Orange to buy Project Kangaroo broadband TV technology

Mobile phone operator Orange is in talks about buying the technology behind Project Kangaroo, the failed VoD venture between ITV, BBC Worldwide and Channel 4.

Project Kangaroo’s partners are understood to have invested around £20 million to develop the technology behind the proposed broadband TV service, which is now likely to be acquired for just a few million pounds, according to reports.

BBC Worldwide, Channel 4 and ITV have been looking to sell the assets of the joint venture following the Competition Commission’s decision to block Kangaroo in February, amid claims that it would “restrict competition” in the market (see Competition Commission “stops” Kangaroo).

Orange is one of two companies that are thought to be in the race to buy Kangaroo’s assets, primarily the technology behind the service – the other is a technology firm.

An Orange spokesperson said: “We are examining this company and we see of course that it could be interesting. Nothing has been decided but we can confirm we are examining it.”

The mobile phone giant would be able to use the technology to bolster its Orange TV broadband service across Europe and in particular, build up its Orange TV service in France, which currently has one million subscribers.

Orange also confirmed its decision to put plans to launch Orange TV in the UK on hold due to a combination of factors, including the deteriorating economic conditions.

“Due to the current economic climate, the present position of the UK TV market, and the evolving regulatory environment, we have decided to put our plans for a full launch of a digital TV service on hold,” said a spokesperson for Orange UK.

“Our vision and ambition for Orange to become a major player in the home entertainment market remains and we will regularly be reviewing our position in order to fulfil on that ambition.”